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"The main cause of the Wall Street crash was the panic selling of shares."

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Introduction

The Wall Street Crash "The main cause of the Wall Street crash was the panic selling of shares." I do not agree wholly with that statement. The panic selling of shares was the immediate cause to the Wall Street crash. However, if there had not have been the panic selling of shares then there would not have been such a dramatic slump but a smaller one. America was doing well in the end of the 1920s; the boom had made half the population happy. However, now that all the people who could afford it had brought electrical goods, cars etc there was no one else left to buy the surplus products. ...read more.

Middle

To increase the boom in the 1920s America put taxes on products coming in from abroad to make it a stronger economic country. The countries in Europe then retaliated and put a tax on all American goods. This meant that there were a lot of extra products not being sold; this was a part of overproduction. In the stock market a lot of speculators were playing with borrowed money from the bank because they felt that they were confident enough to win it back. Speculators were people who knew nothing about stocks but saw that a company was making profit in shares so they would invest in them if they were confident enough. ...read more.

Conclusion

Overproduction was always going to happen, it could have been postponed a few years if the wealth in America had been spread evenly or if Europe hadn't put a tax on all American goods. Even if this had been the case overproduction would have happened sooner or later. Overproduction caused some people to sell their shares that then lead to everyone panicking to sell their shares causing the Wall Street crash. If speculators had not have put in so much money there would not have been such a big slump but there would have been one. The panic selling of the shares was the last thing to happen and probably the most influential thing to happen before the crash. However, the thing that started the crash off was overproduction. ...read more.

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